Bitcoin Cash (BCH) Price Estimate February 2024 – Rise or Fall?

Bitcoin Cash (BCH) has weakened from $298.64 to $218.70 since January 12, 2024, and the current price stands at $237.

The U.S. Securities and Exchange Commission (SEC) recently granted approval for the listing and trading of 11 spot bitcoin exchange-traded funds (ETFs) on U.S. stock exchanges but according to a Deutsche Bank research report which includes a survey conducted from Jan. 15 to Jan. 19, the majority of respondents anticipate a further decline in many cryptocurrencies prices.

But where is Bitcoin Cash’s (BCH) price going next, and what can we expect from February 2024?

Today, Crypto Lists will discuss Bitcoin Cash (BCH) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

Bitcoin Cash improves the overall transaction capacity and lowers fees

On August 1, 2017, Bitcoin Cash emerged as a separate entity from the original Bitcoin network, swiftly establishing itself as one of the most valuable cryptocurrencies worldwide. Formed by a faction of Bitcoin users, this digital currency was conceived to implement distinct technical choices aimed at expanding Bitcoin’s reach to a global audience.

Supporters of Bitcoin Cash generally held the view that Bitcoin needed adjustments to enhance its competitiveness with conventional payment systems such as Visa and PayPal. Additionally, they advocated for reducing the fees users incur when sending transactions, favoring a model that redistributes these costs to other aspects of the network.

To achieve this, Bitcoin Cash modified Bitcoin’s code and released a new software version with features that were no longer compatible with Bitcoin. Bitcoin Cash has lower fees than Bitcoin and allows more transactions to be processed because of increased block size. Because of this, many analysts believe that by focusing on making its transactions cheaper, consumers will begin to choose BCH in online transactions, making it more valuable.

Rating: 9.33/10
Supply: 19,199,644 / 21,000,000
Release date: August 1, 2017

Description: Discover Bitcoin Cash on a Crypto Lists approved exchange!

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

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A recent survey from Deutsche Bank is not optimistic

The 2023 year has been very successful for Bitcoin Cash (BCH) but the price of this cryptocurrency has weakened more than 20% since January 12, 2024, although the U.S. Securities and Exchange Commission (SEC) approved the listing and trading of 11 spot bitcoin exchange-traded funds (ETFs) on U.S. stock exchanges. Negative information is that Bloomberg reported last week that, based on a Deutsche Bank research report featuring a survey conducted from January 15 to January 19, most participants foresee a continued decrease in the prices of various cryptocurrencies.

The survey, which polled 2,000 individuals across the U.S., U.K., and the Eurozone, specifically targeted their views on both the price and volatility of Bitcoin. In their report, Deutsche Bank analysts Marion Laboure and Cassidy Ainsworth-Grace outlined that the introduction of new spot bitcoin exchange-traded funds (ETFs) is anticipated to further institutionalize Bitcoin. However, they observed that the bulk of ETF inflows originate from retail investors.

An outsider asset no longer

The recent decline in the cryptocurrency market is also connected with technical reasons but the price of crypto falls every time it becomes more accessible for two reasons. According to some crypto analysts, being traded on public markets means more information is incorporated into the price, and markets are saying it is not worth much. Furthermore, the evolution of the flagship cryptocurrency into a mainstream asset alters its original value proposition. It no longer belongs to the “outsider” asset class aimed at supplanting a significant government function.

Global investment bank JPMorgan reported that the downturn in the crypto market coincides with significant withdrawals from Grayscale’s bitcoin trust. These withdrawals were converted into a spot bitcoin ETF following approval by the U.S. Securities and Exchange Commission (SEC) on January 10. JPMorgan analyst Kenneth Worthington expressed his belief that the catalyst behind bitcoin ETFs, which has propelled the ecosystem out of its downturn, will disappoint market participants in the months ahead.

Technical analysis for Bitcoin Cash (BCH)

Bitcoin Cash (BCH) has weakened from $298.64 to $218.70 since January 12, 2024, and the current price stands at $237. Bitcoin Cash might have a hard time holding above the $220 level in the upcoming days, and a break below this level would indicate that BCH could probably test the price level at $200.

Important support & resistance levels for Bitcoin Cash (BCH)

On this chart (the period from January 2023), I marked important support and resistance levels that can help traders understand where the price could move. Bitcoin Cash (BCH) weakened from its recent highs, but if the price advances above $280, the next target could be resistance at $300. The important support level is $220, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $200. If the price drops below $200, which represents very strong support, the next target could be located around $180.

What speaks for the rise in the Bitcoin Cash (BCH) price

The cryptocurrency market has historically been known for its volatility, and while efforts were being made to stabilize the market, fluctuations are still expected to be a common occurrence. The overall sentiment on the cryptocurrency market could play a very important role in BCH’s price trajectory in the weeks ahead and the positive developments could trigger substantial price increases. Bitcoin Cash (BCH) remains under pressure, but if the price advances above $280, the next target could be resistance at $300. Traders should consider that the price of Bitcoin Cash is correlated with Bitcoin, and if the price of Bitcoin jumps above $50000, we can see BCH at higher price levels.

What indicates further downfall for Bitcoin Cash (BCH)

The downfall of Bitcoin Cash can be influenced by a wide range of factors, including negative rumors, market sentiment, regulatory developments, technological advancements, and macroeconomic trends. The highly volatile nature of the cryptocurrencies may scare investors to sell BCH if some negative news happens in the cryptocurrency market and because of this, investing in BCH involves a significant degree of unpredictability and substantial risk. The upside potential for BCH probably remains limited for February 2024, especially after comments from JPMorgan analysts who expressed their belief that the catalyst behind bitcoin ETFs, which has propelled the ecosystem out of its downturn, will disappoint market participants in the months ahead.

What do analysts and experts say?

Bitcoin Cash is showing a correlation with Bitcoin and with the rest of the cryptocurrency market and since January 12, 2024, this cryptocurrency has weakened more than 20%. Bloomberg reported last week that, based on a Deutsche Bank research report featuring a survey conducted from January 15 to January 19, most market participants foresee a continued decrease in the prices of various cryptocurrencies which is certainly not favorable for Bitcoin Cash. JPMorgan, the global investment bank, noted that the crypto market’s decline aligns with substantial withdrawals from Grayscale’s bitcoin trust.

These withdrawals were converted into a spot bitcoin ETF following approval by the U.S. Securities and Exchange Commission (SEC) on January 10. JPMorgan analyst Kenneth Worthington expressed his belief that the catalyst behind bitcoin ETFs, which has propelled the ecosystem out of its downturn, will disappoint market participants in the months ahead. Crypto analysts are worried that if Bitcoin drops again below $40000, it could trigger an even bigger sell-off, and in light of this, BCH might have a hard time holding above the current price levels.

Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.